The Big Sandy news. [volume] (Louisa, Ky.) 1885-1929, 1887-06-23
A COLLAPSED CORNER.
The Bottom Falls Out of the Big
Wheat Deal in Chicago.
A Panic Caused by n Break OF Eighteen
and One Half Cents Per Hushei-ssyeraI
Large Failures Milwaukee Dealers
Caught-The Eject Elsewhere.

WILD hChNt5 On Elif tHltAuD bpAhD-
CHICAGO, June Is. Yesterday was by
long odds the widest day the Chicago
Board OF Trade has ever seen. The power
ful wheat clique which has mystihed aud
perplexcd the speculative world for over
three months collapsed and left It's princ-
pals bankrupt Two old and well known
commission firms were carried down with
the wreck, and dozens OF others are left
tottoring on the verge OF ruin.
Tho failure OF Peter McGeoch and tho
collapse OF the lard corner, which occurred
Just four years ugo to-day, was not cir
cumstance In It's effects To the collapse OF
yesterday. The McGcoch deal affected only
the provision interest; tho present deal at
fectod every body Never IN the history OF
speculative trading has deal OF such gl-
gantic proportions been engineered long
and systematically, and with such secrecy.
Though tho deal has covered period OF
three months probably not over q dozen
people, possibly not over half dozen,
know the principals.
The orders came from Cincinnati 10 G. J.
Kcrshaw, and were signed "Wp--that Is
as much as the trade knew, and even that
much was not known until the deal had
been under way for several weeks.
The clique bought May wheat stead
lily from the time tho deal was
started up TO tho expiration Of that oP-
tion, at which time their trades were
changed into June. They readily took aud
paid for all OF the May wheat delivered 10
them, aud evidently Intended 70 do the
same with June. Tho action OF tho Board
OF Trade directors in declaring regular
largo additional storage capacity was
something which they had not calculated
~, aoa To- ,,.hi,b tIfav tyat.a aviloutlv not
prepared.
When II was known that the directors
OF the board favored giving the trade re-
lief by making additional storage-room
regular, tho powerful bears who have
grown rich on three years Of declining
markets started in 10 try the cliques en-
durance. Wheat was shipped from every
available point and tho side-traclts
Of all OF the ronds In this city are now
full OF wheat brought In for that purpose.
The bears sold against this wheat In the
open market and tho clique were the buy.
ors. Prices steadily crept up aud became
y further inducoment to farmers 10 market
their product Al the time tho collapse
came June wheat was worth % cents; by
tho time tho collapse was an assured
fact tho same mouth was selling at
1854 cents, and sales we're made in the pit
at u still lower figure in the excitement OF
yesterday though none were officially re-
ported ~ less than 53I cents. The drop in
the June option was ls16 cents. The neces-
sary expense OF handling tho large re-
cepts OF wheat was too much for even the
long purse OF the clique, and they were
forced 20 the wall
Tho trades OF Maurice Rosonfcld q Co.
were officially ordered closed out by the
/ sFt Ilaa 81
| yesterday, but long bcforo tho announce
ment was made the crowd werc practical
| ly insured that tho clique had gone TO
pieces A secret meeting was held at tho
Hotel Richclieu Monday night between
Joseph wiltshire, Of Cincinnati, we'll
known banker, who Is said 10 have furn
ished tho money IN the great corner, and his
brokers, q y kerahaw, frank JohRson,
81 kQeoHlfil & Cc., and Irwin. Green n
Co, aud MillAhira departed, after prom
iRlnR ms Eiiit..s.s ailrfRtvTs tsissss ;....s=r-
money H'Quld b deposited 70 their
order upon his arrival IN Cincinnati Up
totha close Of ,changc yesterday Wit
shlro had failed 20 keep his promise, and
Hoscnfeld a Go. became tired of waiting
aud At noon ordered their trades closed
out Kershaw was more sanguine and, al
though he admitted that tho funds had not
arrived, still asked that his trades be kept
open until this morning II Is said that ho
expects money from sources independent
OF tho clique, and In that case his failure
to-day will be ayertod,
1t was pretty well understood among n
fow Of the big bears on change that the
Monday night interview had not resulted
In any very pleasant conclusions for the
clique, and word went around at the open
ing OF the board 10 raid the market Both
June aud July wheat was offered from all
aides Of the pit at tho start; the former
broke 8 cents and the latter nearly 5 cents
In tho first Ave minutes.
Tho first bid made for May wheat
was 81 cents and six minutes later wheat
dropped TO 40 cents, difference of AZ
cents from the closing price Monday
night Such scurrying OF brokers and
mcssongers is seldom seen. They rushed
In aud out Of the big room hatlcss and out
OF breath, some to unload wheat and
others to get instructions, Within an
hour millions Of bushels were sold by the
clique.
The brokers supposed TO be running the
corner began by bidding 90 cents, while
the opposition were Offering wheat at s6i3
A few minutes after eleven o'clock Murry
Nelson approached President Wright and
made application ior tne marginal price Oh
June wheat 10 DO hAed. Mr. wright re-
Piled that the matter would 90 con
sldered at meeting 10 pe helu later.
While tno above conversation was gong
on tho alleged Clique orokers were se.ilng
guy wno"s asa,"ee s, '"T ~, s"sn w"oey ."os
haa peen CARRYING i"e eAcisenlon. ,,un,n NJ
creased US tne hhnus on the inelca.or au-
vnnced 70 to9i ana .nen usoppeu 70 20 =
minute a,er 'he hanus poln'eu 70
i,Hi drop OF SIX cents, anu
inc snoru were VIII Al sor's oi
extravagant nius wcro % mauo pus very
Few were accep'ea' lne pius nuc-